Everything You Need to Know About Canada Student Loans

Studying in Canada has become an increasingly popular choice for Indian students seeking quality education and diverse cultural experiences. However, financing an international education can be a significant hurdle for many. To bridge this gap, Canada student loans provide a viable solution.  

Many lenders in India provide education loan options to support their academic aspirations in Canada. Here, we are exploring some essential details to know before you apply for a study loan for Canada and the required documents for obtaining it.

Benefits of Studying in Canada

  • Educational Excellence 

Canada is renowned for its high-quality education system, with numerous universities consistently ranked among the top institutions worldwide. Indian students can benefit from a wide range of academic programs and research opportunities offered in Canada, ensuring a rich and rewarding learning experience. 

  • Affordable Tuition Fees 

Compared to other popular study destinations, Canadian universities offer competitive tuition fees for international students. This makes studying in Canada relatively more affordable, especially when combined with the country’s excellent education standards. 

  • Work Opportunities 

Canada provides ample opportunities for part-time work during studies, allowing students to gain valuable work experience, earn income, and offset some living expenses. The country also offers post-graduation work permits, enabling students to explore career opportunities and gain international exposure. 

  • Multicultural Environment 

Canada embraces diversity and promotes inclusivity. Indian students can expect a welcoming and multicultural environment, fostering cross-cultural interactions, expanding their global perspectives, and building lifelong connections. 

  • Quality of Life 

Canada is considered among the best countries in the world according to numerous quality-of-life indices. Accordingly, the country offers a safe and stable environment for international students. The country boasts stunning natural landscapes, world-class healthcare, and a high standard of living, ensuring a comfortable and enriching student experience.

Eligibility for Canada Study Loans

To apply for a Canada Study loan, Indian students need to meet certain eligibility criteria. Here are some common requirements: 

Admission to a Canadian Institution: Secure admission to a recognised Canadian educational institution and provide the admission letter as proof of enrolment. This ensures that you are pursuing a legitimate course of study. 

Indian Citizenship: Applicants must be Indian citizens to be eligible for a Canada study loan. 

Age Criteria: Loan providers may have specific age limits for loan applicants. Ensure that you meet the age criteria set by the loan provider. 

Academic Qualifications: Possess the necessary academic qualifications to meet the eligibility criteria of the chosen course. This may include academic transcripts, standardised test scores, and English language proficiency certificates (such as IELTS or TOEFL). 

Financial Statements: Provide financial statements, including bank statements, income tax returns, and other relevant financial documents. This helps demonstrate your financial stability and repayment capacity. 

Co-applicant or Collateral Details: Depending on the loan provider’s policies, you may need a co-applicant or collateral to secure the loan. A co-applicant with a good credit history provides additional assurance to the loan provider.

Documents Required for a Study Loan for Canada

Here are the documents you should gather before applying for a study loan for Canada

Admission Letter: Secure an admission letter from a recognised Canadian educational institution as proof of enrolment. This document confirms your acceptance into the program of study and provides essential details required for loan processing.  

Identity and Address Proof: Provide valid identification documents, such as a passport or Aadhaar card, to establish your identity. Additionally, submit address proof, such as utility bills or rental agreements, to verify your residential address. 

Academic Records: Furnish academic transcripts and certificates from your previous educational institutions. These documents serve as evidence of your academic achievements and eligibility for the chosen program in Canada. 

Cost of Education: Present a comprehensive breakdown of the estimated cost of your education in Canada. This should include tuition fees, accommodation expenses, living costs, health insurance, and any other relevant expenses. Demonstrating a clear understanding of the financial requirements showcases your preparedness and enables the loan provider to assess the loan amount required. 

Financial Statements: Provide your financial statements, including bank statements, income tax returns, and other relevant financial documents. These records validate your financial stability and repayment capacity. 

Co-Applicant Details: Lender may require your parent/guardian to act as the co-applicant in your study loan for Canada. The co-applicant, typically a family member or close relative, will provide the guarantee for loan repayment and accordingly, must submit their KYC documents.

Using the Education Loan EMI Calculator

Using the free EMI calculator provided by Finnable, you can predetermine your loan terms, including the loan tenure, amount, and interest rates. Here is how you can use the calculator:  

Step 1- Enter Loan Details: Fill in the required loan details in the designated fields. These details typically include the loan amount, interest rate, and loan tenure.   

Step 2- Select the Repayment Frequency: Choose the frequency of loan repayment. It is usually in monthly installments (EMIs).   

Step 3- Review the Results: The EMI calculator will display the estimated monthly installment amount you would need to pay towards your education loan. It may also show a breakup of the principal amount and interest component for each EMI. 

Step 4- Adjust Loan Parameters: If you want to explore different scenarios, you can go back to the calculator and modify the loan parameters such as the loan amount, interest rate, or loan tenure. By adjusting these variables, you can assess how changes impact your EMI.

Benefits of the Education Loan EMI Calculator

  • Accurate EMI Calculation: An EMI calculator ensures accurate calculations of your monthly instalment amount. It eliminates the possibility of manual errors and provides you with precise figures based on the loan amount, interest rate, and loan tenure.  
  • Financial Planning: The calculator helps you plan your finances effectively by providing a clear understanding of the EMI amount you would need to repay each month. It enables you to budget and manage your income and expenses accordingly. 
  • Loan Customisation: With the education loan EMI calculator, you can experiment with different loan parameters such as the loan amount, interest rate, and loan tenure. By adjusting these variables, you can assess the impact on your EMI and choose a loan structure that best suits your financial capabilities.  
  • Comparison: If you are considering multiple education loan options, the education loan EMI calculator allows you to compare the EMIs for each loan. You can input the details of different loans and evaluate which one offers a more affordable EMI and better repayment terms.  
  • Early Loan Repayment: The education loan EMI calculator also allows you to assess the impact of early loan repayment. By entering a higher amount towards prepayment, you can determine the potential reduction in the loan tenure or the total interest payable. 
  • Time-saving and Convenient: Using an EMI calculator is quick, easy, and convenient. It saves you time that would otherwise be spent manually calculating loan EMIs. You can access an EMI calculator online anytime, anywhere, and receive instant results.


Studying in Canada offers Indian students a world-class education, vibrant multicultural experiences, and promising career opportunities. By understanding the key aspects of Canada student loans and preparing the necessary documentation for the same, Indian students can confidently pursue their educational dreams. 

Frequently Asked Questions (FAQs):

To apply for a personal loan for studying in Canada, you can.  You will need to provide necessary documents, such as admission letter, academic records, and financial statements, as part of the application process.

You can get a personal loan of up to Rs. 40 lakhs for studying in Canada, depending on the lender.

The interest rate for education loans can vary depending on various factors, such as the loan provider, loan amount, repayment tenure, and applicant's creditworthiness.

The repayment period for an education loan typically starts after the completion of your education and you extend up to five years from the completion of your course.

Amit Arora


I am a seasoned retail banker with over 21 years of global experience across business, risk and digital. In my last assignment as Global Head Digital Capabilities, I drove the largest change initiative in the bank to deliver the end-to-end digital program with over US$1 billion in planned investment. Prior to that, as COO for Group Retail Products & Digital, I implemented a risk management framework for retail banking across the group.
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